PIA Press Release2010/01/07

2009 inflation within target, registers at 3.2%

"Given slower price increases in 2009 than in 2008, the country's inflation rate averaged 3.2 percent, significantly lower than 2008 inflation of 9.3 percent and well within the DBCC forecast of 2.5 to 4.5 percent for 2009," Acting NEDA Director-General Augusto B. Santos said in a memorandum to President Gloria Macapagal-Arroyo.

For December 2009, the inflation rate remained lower at 4.4 percent compared to 8.0 percent a year ago.

Prices have been increasing slowly since August 2009 when the inflation rate was 0.1 percent.

For the third month in a row, month-on-month inflation was at 0.6 percent due to higher meat, fuel, and transportation prices.

Despite lower prices of rice (-0.1%) and fruits and vegetables (-2.0%) in December compared to November, higher prices of meat (2.0%) and other non-food items such as fuel (6.0%) and transportation and communication (1.8%) increased significantly.

Meanwhile, core inflation, which measures the change in average consumer prices excluding certain items with volatile price movements such as food products and energy, also declined to 4.1 percent compared with 6.2 percent in 2008, reported the National Statistics Office (NSO).

Inflation for 2009 in Areas Outside National Capital Region (AONCR) were higher compared with NCR, at 3.9 percent and 1.6 percent respectively. However, these rates are significantly lower compared to 9.7 percent for AONCR and 7.0 percent NCR in 2008.